Pursuant to Article 76 of the Law of Ukraine On Banks and Banking, on 24 April 2017, the NBU Board issued Decision No. 217-D/BS On Declaring Public Joint-Stock Company DIAMANTBANK Insolvent.
Based on the diagnostic study findings, the required amount of additional capital that needed to be injected into DIAMANTBANK PJSC was approved. DIAMANTBANK PJSC, as well as the second group of 20 largest banks, had to meet a minimum capital adequacy ratio (CAR) of at least 5 percent as of 1 April 2017.
DIAMANTBANK PJSC submitted to the NBU a restructuring plan that contained a series of measures to raise additional capital. During 2016, the bank’s managers and qualifying shareholders took measures to implement the recapitalization program, including through the repayment of related-party loans, the provision of financial assistance that is not subject to repayment by the bank’s shareholder and the posting of additional collateral.
However, as of 1 April 2017, DIAMANTBANK PJSC failed to implement measures stipulated by the restructuring plan. As a result, the bank failed to meet a minimum capital adequacy ratio. In view of the above, the NBU Board adopted a decision on declaring DIAMANTBANK PJSC insolvent.
The National Bank of Ukraine underlines that 96% (197,000 individuals) of all the depositors of DIAMANTBANK PJSC will be paid out in full, as amounts held in their deposit accounts fall within the insured deposit amount of UAH 200,000, which is covered by the Deposit Guarantee Fund. Customers with larger deposits (above the insured deposit amount) will be reimbursed up to the compensation limit guaranteed by the Fund. The DGF will pay out a total of about UAH 1.1 million in compensation to eligible depositors.
As of 24 April 2017, DIAMANTBANK PJSC’s qualifying shareholders are Mr Davyd Zhvania, Mr Ihor Kerez, Mr Andrii Shchukin and Mr Vyacheslav Tsyhanenko.